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Vietnam: On the road towards the renewal of socialism

By Tran Dac Loi

Years ago, while we were fighting the US war of aggression, the word “Vietnam” became very familiar to the world.
However, over the past decades, less information about Vietnam has reached to the outside world,
and therefore understanding of Vietnam has become less among its world
friends. It is against this background that I would like to take this
opportunity to provide you with a broad overview about history of Vietnam,
with the main focus on its development over the past 30 years.

The history of Vietnam
had always witnessed untold hardships and challenges in its struggles against
foreign invasions for national defence and construction.

In 1858, the French legionnaires
invaded Vietnam,
suppressing all resistance forces in blood, step by step occupied the country
and finally imposed the colonial yoke on the Vietnamese people. As the rulers,
instead of bringing “civilization”, “liberty”, “equality” and “fraternity” to
our country, the French colonialists did nothing other than brutally exploit
our natural resources and human labour. They built more prisons than schools.
They produced more alcohol and opium than rice. Towards the end of World War
II, Japanese fascism jumped into Vietnam
and collaborated with the French in ruling Vietnam.
The Vietnamese people were thus put under a double yoke.

In 1945 alone, two
million out of the then total 22 million-strong Vietnamese population died of
starvation, while some 95% of the nation were illiterate. Under the leadership
of the Vietnam Communist Party and Ho Chi Minh, we succeeded in launching the
August 1945 Revolution that won the power from the Japanese and the French. On September 2, 1945,
President Ho Chi Minh proclaimed independence for the country and founded the
Democratic Republic of Vietnam. Under the threat of a French comeback, this
newly born revolutionary government declared a war against hunger, illiteracy
and foreign aggression while holding the first free elections in the nation’s
history.

Between 1946 and
1954, the young republic had again to fight the French colonialists, who were
then supported by the US
imperialists in the nine-year long war that was brought to an end by the
historic Dien Bien Phu
victory. With the Geneva Accords signed in the first international conference
on Vietnam in July 1954, independent Vietnam was officially recognised by the
world, and the country was expected to be unified after a temporary two-year division
for regrouping of opposing forces in preparation for a national general
election.

However, this never
happened, as US
imperialism sabotaged the Geneva Accords, replaced the French in the southern
part of the country, and set up a dictatorial government and puppet army. Under
the label of “freedom” and “democracy”, they on one hand repressed the
southerners and their revolutionary forces, and on the other hand, carried out
an air war of destruction against the North. With cries, “Bomb North Vietnam
back to the stone age”, “kill up, fire up and destroy up”, the US military dropped
14.3 million tons of explosive in Vietnam, which equals to 725 of the nuclear
bombs dropped on Hiroshima in 1945 and four times the tonnage of bombs that
were used during the Second World War. At the same time, the US
military used up to 80 million litres of chemicals to “clear” the land. It sprayed
more than 45 million litres of Agent Orange, containing 366 kg dioxin, the most
toxic of all chemicals discovered so far. Please note that only 80 grams of
dioxin could kill the whole population of New
York City, and that the total
amount of dioxin used by the US
military in Vietnam
could kill humankind. In Vietnam,
an estimated 4.8 million people have fallen victim to Agent Orange/dioxin, suffering
from virtually incurable diseases and deformities. Throughout the war, three
million Vietnamese had been killed, another four million had been wounded. The
country’s major infrastructure was destroyed. Landmines have been found
scattered in many areas and continue to be hidden killers of civilians in many
villages. Today, 30 years after the war, as many as 300,000 Vietnamese are
still missing, and their remains are still nowhere to be found by their loved
ones.

Yet, the brutality of
the strongest imperialist power could not subjugate the will of the Vietnamese
people. Under the leadership of the Communist Party and Ho Chi Minh, in the
spirit of “Nothing is more precious than independence and freedom”, the
Vietnamese people once again rose up in the struggle against the US
imperialists and their puppet army. After the US
forces withdrew from Vietnam
as a result of the signing of the Paris Agreement in January 1973, our
liberation forces intensified their offensives, completely liberated the South,
and reunified the whole of the country through the historic Ho Chi Minh
campaign in April 1975.

Stunted development

The war resulted in
very heavy consequences on Vietnam.
Before the war, Vietnam
used to be a poor country. Obviously, the war prevented our country from developing
during those years by destroying the country’s economic and social
infrastructure, living environment and, most seriously, killing as many as three
million ordinary people, wounding 4.5 million and leaving behind millions of
victims of Agent Orange/dioxin. These are just some figures, but I hope they can
provide you with a picture about the massive and grave destruction the US
inflicted on Vietnam
during its war, as well as the difficulties we are still facing even today, 30
years after the war.

After the war, we
badly needed a peaceful environment as well as resources, support and
assistance to heal the wounds, rebuild the country and improve the people’s
living conditions. But that did not happen. Vietnam
had to go through another period of hardship after the war.

The US
economic embargo which was imposed on Vietnam
until 1994 prevented us from access to the world’s recourses and markets. The
only limited assistance we received was from the Soviet
Union and socialist countries, which also faced
economic difficulties during that period. The West and its allies tried to instigate
all possible political and economic sabotage against Vietnam.
The liberation of Cambodia
from genocidal Khmer Rouge and the subsequent struggle to prevent the return to
power of the Khmer Rouge were also a heavy cost in human and material resources
for Vietnam.
Border conflict with China
was an additional big problem for us.

The subjective factor
aggravating the situation was the inefficiency of the national economy. The
centrally planned economy based on state and collective ownership was applied
in Vietnam.
It had brought about social equality but could not simulate economic development. Inside the
country, the economy stagnated. Labour productivity was remarkably low. Being an
agro-based nation, we suffered from chronic food shortages and, as a result, we
had to import approximately one million tons of food a year. Essential consumer
goods were also lacking. The people’s livelihood was in very bad shape. The
inflation rate was rocketing in the 1980s, reaching 774.7% at its peak. We were
in fact engulfed in a severe social-economic crisis. We realised that it is
because we had applied a form of productive relationships which was not
adequate to the very low level of existing productive forces in Vietnam,
as well as a form of distribution which was beyond our productive capacity. In other
words, there had been a confusion between the desired objectives and existing reality.

Đổi mới

In 1986, at its 6th
National Congress, the Communist Party of Vietnam adopted the policy of renewal,
called in Vietnamese Đổi mới. The fundamental
concept of Doi Moi is to bring socialist construction to the objective reality
of the initial step in the transition period towards socialism in Vietnam,
taking into consideration of the current world situation.

Under renewal, the
economic policy consists of the following main components:

Application of a
socialist-oriented market economy with a view to improving economic efficiency
as a means to develop the economy and to improve the population’s living
conditions. In our view, the market itself will never solve social problems. We
actually do not trust the so-called “free market”, which actually means an
economic jungle which allows big private capital to control and dominate the
economy while workers are more and more exploited. Instead, the market must be
under state management through policies that ensure the healthy development of
the economy and balanced regional development, thus facilitating social
advancement. The market is only a tool for the stimulation of economic
development, the functioning of the market depends largely on who is using the
tool and for what purposes.

Diversification of
forms of ownership and modes of production with the state sector playing the
leading role so as to release all production forces and tap all available
potentials and resources for development. Within this multi-sector economy, the
state economic sector plays a positive and decisive role, monopolises certain
sectors vital to national security, and maintains the dominant role in such
major social and economic areas as natural resources, railways, aviation,
public transport, electricity, water, communications, banking and insurance,
etc. State-owned enterprises play an active role in businesses that are
significant to the development and interests of a large portion of the population,
such as mining, construction, agriculture, heavy industry, textiles and
garment, etc.

Promotion of
international economic cooperation and integration on the basis of mutual
benefit and prioritising mobilisation of all domestic resources and potentials.

As such, this policy
has brought about radical positive changes to the country over the past two
decades.

The economy has begun
to grow. GDP has increased at a fairly high rate, averaged at about 7-8% per
year. In 2006, GDP increased by 8.2%. Vietnam
satisfied its population’s needs for food consumption in the late 1980s. Food
production output has increased from 17.5 million tons in 1987 to 35 million
tons and 39.7 million tons in 2000 and 2006 respectively. At present, Vietnam
is the world’s 2nd largest rice exporter and one of the world’s largest
agro-based product exporters. Industry has enjoyed rapid development rates,
from 8% in the 1980s to 12-13% and 13-15% in the 1990s and early years of the
21stcentury respectively; industrial share in GDP increased from
29% in 1986 to 41.5% of GDP in 2006. Exports went up by 20-25% per year, reaching
22.1% in 2006. Foreign investment has kept flowing in, amounting to a total
registered capital of over US$60 billon at present, of which about US$30
billion has been realised. 2006 saw a record of FDI inflow with US$10.2 billion.
The number of international tourists visiting Vietnam
has increased year after year, e.g. by 21.8% in 2006. Per capita GDP increased
from US$120 in 1986 to US$720 in 2006.

In 2005 as a
proportion of GDP output, the state sector contributed 38.42%, collectives 6.83%,
household production 29.95%, national privately owned 8.91% and foreign-owned
private sector 15.89%. This means that the state sector continues to play a
leading role in the economy.

Social development

However, the market
economic mechanism and the open-door policy have both led to previously unseen
social problems such as unemployment, corruption, prostitution and other
serious problems, like trafficking in women and children, drug smuggling and
addiction, and HIV/AIDS, etc. Polarisation between the rich and the poor, and
between rural and urban areas, has come to the fore. These are the major
challenges we are confronted with in the process of national renewal and socioeconomic
development.

Regarding social
development, the renewal policy comprises the following key elements:

To make the human the
centre of development, and economic development as the facilitator for the
implementation of social objectives. In turn, the implementation of social
policies will promote economic development. To ensure that social equity is
translated into reality andthat social
progress is accompanied with every step of economic development.

To enable all people
to realise their capability and potential; encourage them to become rich
lawfully while the state should concentrate its efforts on eliminating hunger
and alleviating poverty, assisting the poor and people with disabilities or in
difficult circumstances.

To regard the
development of education, training, science and technology as a prime national
policy to develop human resources and a catalyst for sustainable social
development.

Vietnam
at present has a population of 84.11 million people, 78% of them are living in
rural areas. Economic development has helped the country overcome the
socioeconomic crisis in the 1980s and has visibly improved the people’s
livelihoods.

The socioeconomic development
strategy for 2001-10 set up in 2001 is projected to record an annual economic
growth rate of 7%, reduce the population growth rate by 1.23%, reduce poverty
to 10-11%, bring the child malnutrition rate down, and uplift the average life
expectancy to 70 years.

The national program
on agricultural and rural development has been an important priority for the
country. Electricity, roads, schools, communication and health care centres have
been constructed in rural areas. By 2006, 99% of villages had electricity
(compared with 60.4% in 1994), 96.7% villages have roads (compared with 87.9%
in 1994), 99.6% villages have primary schools and 91.2% have junior secondary
schools (compared with 76.6% in 1994), 94.4% have telephone communication
(compared with 82.6% in 2001), 99,3% have healthcare centres.

About 24-25% of the yearly
national budget has been earmarked for social programs. Hunger eradication and
poverty reduction constitute the primary goals of the socioeconomic development
strategy. Poverty incidence has been brought down from 75% in 1986 to 58.1% in
1993, 37.4% in 1998, 28.9% in 2002, 24.1% in 2004 and 19% in 2006, which means
that some 310,000 people have been lifted from poverty each year. Within the
10-year period (1991-2000), Vietnam
has already fulfilled the UN millennium goal set for 2015 of halving the
poverty rate. Tens of thousands of houses for the poor are built every year.

The state continues
to play the leading role in the fields of education and health care. The
universal primary education program was completed in 2000. At present, the universal
junior secondary education program is being carried out in 34 out of 64
provinces and cities. Enrolment increased from 14.9 million in the 1994-95
academic year to 23.5 million in the 2006-07 academic year, while the
university and college student population increased from 203,000 to 1,405,000
in the same period. The number of universities and colleges increased from 109
in 1995 to 255 in 2005. The literacy rate is as high as 95% of the national adult
population.

Certain epidemic
diseases have been put under strict control. Over the past decade, the child
malnutrition rate has gone down from 45% to 25%. The infant mortality rate
declined from 44% in 1990 to 16% in 2006. The average life expectancy increased
from 62 years in 1990 to 72 years in 2006. The country’s Human Development
Index (HDI) jumped up from 0.498 in 1991 to 0.688 in 2000 and 0.810 in 2006.

The 10th Congress of
the Communist Party of Vietnam held in April last year set an important task
for the country in the forthcoming period. Our objective is to lift the country
from underdeveloped status by the year 2010 and to turn the country into an
modernised industrialised one by the year 2020. Poverty will be reduced to
10-11% by the year 2010. Education and health care will get higher shares of
the national budget .

People’s power

Politically, the key
issue for the socialist political system in Vietnam is to guarantee people’s
power for people’s interests. In doing so, it is very important to maintain
politics free of influence of money, to be non-market space on the one hand and
at the same time, to constantly strengthen people’s democracy on the other. The
overall political concept is based on trying to achieve social consensus
instead of confrontation while state power should be always on the side of
majority of the population, which is the working people.

The Communist Party
of Vietnam continues leading the country. The CPV comprises more than three
million members. Without departing from its foundation as a party of the working
class, striving for the interests of working people, the ruling party is trying
also to embrace the interests of the whole nation and entire population. Being
aware of the permanent dangers of bureaucratisation for a party in power, the
CPV is focusing on an anti-corruption campaign, enhancing the party’s capabilities
and militancy, strengthening the ties between the party and people, and
launching the campaign to follow the example of President Ho Chi Minh among all
party’s members and cadres.

Vietnam is now in the
process of building a law-governed socialist state of the people, by the people
and for the people. The National Assembly is the supreme legislative body and is
elected every five years by secret ballot and through a direct elective system.
All citizens aged 18 and older have the right to vote and stand for elections
at all levels. Although voting is not compulsory, the voting rate has always
stood more than 90%. Mass and people’s organisations number more than 300 at
the national level and tens of thousands at local levels.

It is through these channels that people from all walks of life participate
democratically in the socioeconomic development process. There are more than
700 national and local newspapers to keep the population updated on local and
international developments. Nowadays, there are about 13 million Buddhists, 5.7
million Catholics, 2.3 million Cao Dai believers, 2 million Hoa Hao followers,
421,000 Protestants and 65,000 Muslims; all citizens are entitled to freedom of
religion and non-religion.

Women’s role and
status has kept improving. At present, Vietnam is the leading country in Asia
in terms of women’s representation in parliament, with 27.3% of the National
Assembly deputies being women. Ethnic minorities enjoy great attention from
both the state and the public, and as an example of which, about 17% of the deputies
to the National Assembly are from different ethnic minority groups.
Implementation of “grassroots democracy” enables people to directly participate
in the decision-making, monitoring and implementation processes in their
localities. Institutionalised democracy aims to enable each and every
individual to control his or her own destiny, as well as that of the country.

International relations

In the field of
external relations, we stand for a foreign policy based on independence and self-determination,
and diversified and multilateral international relations based on the principle
of respect for independence, sovereignty, territorial integrity,
non-interference in the internal affairs, equality and mutual benefit. Vietnam is
a friend and reliable partner with all countries in the world community,
striving for peace independence and development.

Given the current
complicated international situation, we have been able to break down the
blockade and embargo imposed by hostile forces on our country and reach out to
the outside world. We have succeeded in establishing diplomatic relations with
nearly 170 countries, maintaining normal relations for the first time in our
history with all major countries of the world.

Apart from the UN,
Vietnam has also belongs to the most important international and regional
organisations. Specifically, in our foreign policy and practice, relations with
socialist countries, communist and workers’ parties, and traditional friends
are always among our top priorities.

Conclusion

Looking back at the
experiences of more than 20 years of Doi Moi in Vietnam, I can make the
following conclusions:

Socialist
construction can be not only economically effective but more importantly, can
solve social problems much better than any other society with similar economic
conditions. In other words, socialism is not only possible but is viable, is
good for society and for the people.

While maintaining and
being consistent with socialist objectives aimed at the elimination of
exploitation, promotion of social equity and justice along with developing
productive forces, the road towards socialism in each country should be based
on the objective existing reality and conditions in the given country;

Socialist
construction is not a spontaneous process. It is a long-term, self-conscious
and oriented process which requires consistent policies and efforts towards set
objectives. That’s why it is vitally important to maintain the stable leadership
of the political party leading this process.

Still, there are a number
of problems requiring a solution from us. As a poor and developing country, our
per capita GDP remains still very low as compared with other countries in the
region and the world. Our competitiveness in the international market is
modest. The quality of our education and healthcare systems remain less than
desired. As many as 19% of the population are still living in poverty, and 25%
of children are still malnourished. War consequences, especially those left by
Agent Orange/dioxin, remain extremely serious.

Neoliberal globalisation
poses huge challenges to Vietnam. The prevailing inequitable economic order and
unfair trade practices are adversely affecting the interests of millions of
Vietnamese workers and farmers. Vietnam’s admission into the World Trade Organisation,
along with opening up new opportunities, also poses many challenges for our
socioeconomic sovereignty and development.

There are at the same
time external forces that attempt to undermine Vietnam’s independent and
socialist-oriented course. They are resorting to all possible ways and means to
destabilise our country politically, and interfere in our internal affairs
under the pretext of “promoting democracy” and “protecting human rights”. Since
Vietnam is among the few socialist countries in existence, activities to
sabotage and undermine its socialist orientation and the leadership of the
Communist Party are colossal.

These are also internal
challenges we are confronted with. We are very conscious of the many problems
and shortcomings on our side, and of the many things we need to do to develop
the economy, consolidate the social system and reform the administrative
apparatus with a view to enhancing our political, economic and social
potential. Yet, there is one thing I can assure you: we are persistent in the
clear goals of advancing towards an independent socialist country, where the
people can enjoy a life in happiness and abundance, where power belongs to the
people and serves the interests of the people, and where the society is
advanced, democratic and equitable.

We do understand that
this is not an easy task, especially in the current international situation.
There is no ready-made formula for it, but it is our people’s choice, and we
will strive our very best to achieve it. This is our new struggle, and once
again, we need the solidarity and support from you, from the people all over
the world in this new struggle.

Thank you.

[A
talk presented at the Latin America Asia Pacific International Solidarity Forum
in Melbourne, October 14, 2007. Tran Dac Loi is the Executive Vice-President of
the Vietnam Union of Friendship Organisations and Secretary General of the
Vietnam Peace & Development Foundation.]

VIETNAMFact Sheet

Population

Population
(2006):

84.11 million

Population in urban area (2006):

21.7%

Annual
population growth rate (2006):

1.21%

Economy

1986

- 1990

1991

- 1995

1996

- 2000

2001

2002

2003

2004

2005

2006

GDP per capita (US$):

120

220

318

375

394

482

564

638

729

Real GDP
growth (%):

4.4

8.2

7.0

6.9

7.1

7.3

7.8

8.4

8.2

GDP
composition by economic sector (% of GDP):

1986

2000

2003

2006

- Agriculture

43.0

24.6

21.7

20.4

- Industry &
Construction

29.3

36.7

40.5

41.5

- Services

27.7

38.7

37.8

38.1

GDP composition by ownership (%of GDP):

1990

2000

2003

2005

- State

31.7

38.5

39.1

38.4

- Non-state domestic

- Collective

- Houshold

- Private

63.0

48.2

46.4

45.7

6,8

30

8,9

- Foreign-invested

5.3

13.3

14.5

15.9

Rural development

1994

2006

2010

2015

Villages having electricity
coverage

60,4%

89%

95%

100%

Villages having auto road to the
center

87,9%

96,7%

Villages having primary schools

99,6%

Villages having junior secondary
schools

76,6%

91,2%

Villages having telephone communication

82,6% (2001)

94,4%

Villages having health care
centers

99,3%

Poverty alleviation

1986

1993

1998

2002

2004

2006

2010(target)

Population living in poverty (%)

75

58

37

29

22

19

10

Health

1990

1995

2000

2005

Life expectancy at birth (years)

62

65.2

67.8

72

Infant mortality rate (per 1,000 live births):

44.4

32

23

16

Under-five mortality rate (per 1,000 live births):

58

44

30

19

Children underweight (%):

51.5

44.9

33.1

25.2

Education

Adult
literacy rate: (2005): 95%

Net
primary enrolment ratio: (2005-2006): 98%

Net
secondary enrolment ratio: (2005-2006):
80%

University
and college: 1995: 109 ; 2000: 148 ; 2005: 255

University
and college students (thousand): 1995:
203; 2000:899,5; 2005: 1,404,7